Alphabet Stock Finds Support at Key Technical Level

Alphabet Stock Finds Support at Key Technical Level Options are attractively priced at the moment too

GOOG has found support at its pre-earnings report lows. The shares are trading at their year-to-date anchored volume weighted average price (AVWAP), an area that aligns with their six-month moving average. Stalling out at the +10% year-to-date level, there’s potential for a right-shoulder low to form off an inverted head-and-shoulders pattern. In the options pits, put support stacks up around the 335-340 strikes, but you need to look at both Class A and C tickers to see the skew. Options are affordably priced as well, with the stock's Schaeffer’s Volatility Index (SVI) sitting in the 15th percentile of its annual range. And with a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100, the security has consistently realized higher volatility than its options have priced in, a boon for options traders options traders. Our recommended October call has a leverage ratio of 10.5 and will double in value on a 10.1% move in the underlying equity.